Capital One Financial Corporation has announced net income for the fourth quarter of 2014 of $999 million, or $1.73 per diluted common share. This marks a drop from the third quarter of 2014, when the company posted a net income of $1.1 billion, or $1.86 per diluted common share.
Compared to Capital One’s third quarter of 2014, net revenue increased 3 percent to $5.8 billion, total non-interest expense increased 10 percent to $3.3 billion (with a 30 percent increase in marketing and 8 percent increase in operating expense). Pre-provision earnings decreased 5 percent to $2.5 billion, while provision for credit losses increased 12 percent to $1.1 billion. The company earned a mortgage representation and warranty benefit of $41 million ($26 million net of tax) in discontinued operations.
Said Richard D. Fairbank, Capital One’s Chairman and Chief Executive Officer: “2014 was a strong year for Capital One. We returned to growth in our Domestic Card business, delivered $10.1 billion in pre-provision earnings, and returned significant capital to our shareholders. We’re poised to build on the momentum in 2015. Our strategic priorities for 2015 have not changed, and we remain focused on the levers to create value and sustain strong performance for our shareholders.”